(Yicai) Feb. 22 -- Jiayou International Logistics said it plans to invest USD88.1 million to acquire a 20 percent stake in a Mongolian coal developer to ensure the growth of its China-Mongolia cross-border logistics business.

Jiayou signed a deal with Mongolian Mining Corporation yesterday to acquire the stake in the coking coal producer's subsidiary Khangad Exploration, the Beijing-based firm announced late on the same day.

Jiayou also agreed to purchase 17.5 million tons of coal from MMC within 10 years, it added. The transaction will form a long-term strategic partnership between the two companies, ensuring a stable supply of coal to meet the needs of end users, it noted.

In addition, more stable supply and reliable logistics and transportation capacity will enhance Jiayou's core competitiveness in the cross-border logistics market between China and Mongolia, it said. Integrating logistics and trade to carry out the Mongolian coking coal supply chain business will promote the continued growth of its cross-border integrated logistics business between the two countries, it added.

Jiayou's net profit likely surged 59 percent to up to CNY1.1 billion (USD152.9 million) in 2023 from a year earlier, it said on Jan. 31.

Shares of Jiayou [SHA: 603871] rose 0.7 percent to CNY23.30 (USD3.24) apiece as of lunch break in Shanghai today. The stock surged to a record high of CNY23.95 at one point yesterday.

Editor: Martin Kadiev